. was trying to emulate karen the super trader.. the darn premiums on the call sides are pathetic... you have to go so close to the money to make some thing and can easily get burned. i am beginning to think. that as the saying goes, there is no free money and many folks are trying to emulate karen's trading strategy on the put side, ( aka selling insurance) on SPY, seems to be giving some return, but all hell will break loose in a mini or any prolonged crash.. aka picking pennies in front of a steam roller.. u will give back months or years of pennies in a single bad spell. so . my conclusion is.- No free money... efficient market theory.. everything is priced in .. no edge. no gain. and unfortunately u will bleed thru commissions... fortunately, I have a regular day job and better to concentrate on that. will keep making small trades to check out Karen's super trader strategy( google her) or see this thread http://www.elitetrader.com/vb/printthread.php?threadid=254837
Premiums being excessively light present opportunities just like excessively fat premiums do. If options are cheap you buy them outright.
Totally agree with Darwin: "so . my conclusion is.- No free money... efficient market theory.. everything is priced in .. no edge. no gain. and unfortunately u will bleed thru commissions..."